Government consults on standard s106 planning agreements for medium-sized sites

The National Planning Policy Framework defines medium development as sites comprising of housing development where 10 to 49 homes (inclusive) will be provided, and the site has an area of up to 2.5 hectares.

The consultation, which runs until 20 October 2026, is set out in two parts.

Part 1 seeks views on two standard clauses templates for sites between 10 to 49 units. The first for bilateral s106 agreements and the second for unilateral undertakings (UUs), together with schedules for financial contributions and the local planning authority’s covenants.

Part 2 seeks views on two draft Affordable Housing Schedules for sites between 10 to 49 units. The first for Full Planning Permissions, including a discretionary cascade mechanism, and the second for Outline Planning Permissions.

In the introduction to the consultation paper, the MHCLG said: “Section 106 (s106) agreements are, and will remain, an essential mechanism for delivering social and affordable housing. They account for a significant proportion of affordable home completions and total new home delivery each year, and secure important site-specific mitigations required to make development acceptable in planning terms.

“Although vital to the provision of affordable housing and infrastructure, in recent years the negotiation of s106 agreements has become synonymous with inefficiency and delay, which demands significant local authority resources and can have a disproportionately negative impact on Small and Medium Enterprise (SME) builders.”

It added: “The government intends to publish further model obligations and planning conditions to support consistency in decision making in due course. This is a key part of our ambitions for a more streamlined, certain and rules-based planning system which supports more timely decisions, boosts market diversification and supports the delivery of significantly more homes, including affordable homes.”